Shares in Australian airline Qantas have dropped over 10 percent this morning after announcing that it had been hit by “softness in demand”.

The group cited the “upcoming federal election and recent drop in consumer confidence in Australia” as reasons for the fall in passengers, and have axed plans to increase flight routes and capacity.

Domestic capacity growth in the fourth quarter will now be negative compared to the same period a year earlier, and the airline has cut its domestic capacity increase from 2 percent to between 0.5 percent and 1 percent.

Shares in Qantas (ASX:QAN) are currently down 10.84 percent at 3.62 (1007GMT).

18/04/2016